Cellumed Achieves Record First Half Sales... "Full-Scale Preparation for Mass Production of mRNA Manufacturing Enzymes"

[Asia Economy Reporter Jang Hyowon] Cellumed announced on the 16th through a public disclosure that its sales in the first half of the year reached an all-time high, driven by increased sales of ‘Rafugen DBM,’ which received approval from the US FDA. The consolidated sales for the first half amounted to 63.6 billion KRW, and net profit was 3.3 billion KRW, successfully maintaining a positive earnings trend. However, amid growing global concerns over inflation and a sharp rise in raw material and component prices, operating profit recorded a loss of 400 million KRW.

In addition to the FDA-approved demineralized bone matrix graft ‘Rafugen DBM,’ sales of the dental bone graft material ‘Dental Powder,’ approved by the Korean Ministry of Food and Drug Safety, have steadily increased. The export growth of ‘cosmeceutical’ products also accelerated the improvement in first-half sales. On a separate basis, first-half sales grew by more than 10 billion KRW compared to the same period last year, driven by increased sales of core products and expanded exports, enabling both the core business and consolidated operations to maintain a balanced growth trend.

Kang Yongju, Vice President of Cellumed, stated, “Despite the global economic downturn, orders for ‘Rafugen DBM’ and ‘Dental Powder,’ which are recognized for their top quality in the market, are surging,” adding, “In the second half, the sales growth trend of bone morphogenetic proteins and cosmeceuticals is expected to continue, leading to record-breaking performance.”

He continued, “Based on the performance growth of our cash cow business, we have secured a stable profit structure, and we are also actively advancing the establishment of a mass production system for the new growth engine, ‘mRNA production enzymes,’ which will enable us to secure global competitiveness.”

Cellumed has continued research and development with a global German bio company and achieved success in developing mRNA production enzyme samples in the first half of the year. Earlier this month, Cellumed established a subsidiary, ‘Cellumed Biologics,’ in Songdo, Incheon, to enter the biosimilar business centered on the mRNA platform. ‘Cellumed Biologics’ plans to primarily focus on mass production of mRNA production enzymes, which form the basis of ‘mRNA vaccines and therapeutics.’

A Cellumed official explained, “There may be questions in the market about the necessity of establishing a subsidiary, but the Songdo Bio Cluster offers the advantage of purchasing business sites at cost, while the entry requirements include attracting more than 10% foreign capital and undergoing thorough review of future business plans by the Incheon Free Economic Zone Authority,” adding, “Considering joint research and development, technology transfer, and production with world-class university bio-research institutes in Songdo, it is difficult to overcome various regulations by pursuing this solely through Cellumed headquarters, so after long consideration, we decided to establish a subsidiary.”

He further stated, “Although there are market concerns about large-scale funding being injected into the subsidiary, the business site is supplied at cost, so the initial investment is not large. In the early stages, rather than large-scale expansion, we plan to actively utilize existing factory facilities for demand and supply forecasting. Mainly, the GMP factory and expanded facilities owned by Cellumed will be used,” emphasizing, “Full-scale facility investment will proceed upon signing large supply contracts. Since the initial investment is not large and overseas funding will be secured immediately after obtaining bio-cluster entry approval, there is no funding risk as some investors worry about.”

Cellumed Biologics is a research and development and contract manufacturing specialized subsidiary. All core rights, including intellectual property rights and sales rights of pharmaceuticals and other products developed and produced by Cellumed Biologics, will be held by Cellumed. Since sales will also be recognized by Cellumed, the company explained that all benefits from the subsidiary’s growth will accrue to Cellumed.

Cellumed is in close discussions for joint research and development and bio-patent technology transfer with bio-research institutes of ‘world-class universities’ located overseas. Among the discussions is the acquisition of more than 10% equity in Cellumed Biologics, indicating that a closer cooperative relationship is expected to be established. Cellumed plans to announce detailed related information soon.